Internal controls are key to achieving organizational objectives. They are also critical to eliminating mistakes and preventing fraud.

The Association of Certified Fraud Examiners (ACFE) 2018 Report to the Nations on Occupational Fraud and Abuse found the most prominent organizational weakness that contributed to fraud was:

1. a lack of internal controls (30% of cases), 
2. an override of existing internal controls (18% of cases), and
3. lack of management review (17% of cases).

That's 65% of cases!!

Strong internal controls should be a primary focus of every management team. The challenge is that this requires considerable effort:

This traditional approach to ensuring internal controls are effective is problematic:

Time intensive + Extreme testing delays = High Risk (read more...)

If you think you could be doing something better with this time, consider better solutions...

Evolve your internal controls system. Get better productivity and stronger controls with Data Analytics & Continuous Monitoring  systems that:

• perform automated testing on 100% of your transactions across numerous, disparate data sources,
• ensure testing occurs on a schedule optimized to catch & mitigate the risk of mistakes & fraud,
• notify appropriate individuals immediately (via email or SMS) when exceptions are identified,
• provide remediation guidance to ensure the correct steps are followed,
• automatically escalate exceptions that are taking too long to resolve,
• centralize documentation of remediation actions taken & findings to satisfy auditors.

Where would your finance department use this technology? In nearly every process you have. How about to:

• catch duplicate payments before the payment ever leaves your bank
• automatically verify new vendors do not share any links to employees
• recalculate property tax or utility rate increases prior to issuance of each invoice
• forward each overdue AR invoice to the right staff member exactly when your policy states follow-up is required
• verify payments made by P-Card are not also paid via cheque / EFT

Stronger controls

Test 100% of transactions in near real time, perpetually. Neither vacations nor vacancies impact the testing frequency. This enhances visibility into internal control exceptions to ensure that each one is investigated and remediated. 

Lower costs

Reduce the cost of compliance with the move away from manual, periodic testing. Instead, allocate your staff to valuable analysis, remediation and preventative tasks.

Faster detection

More testing, done immediately decreases the risk of non-compliance. The ACFE's report found that frauds that last over 60 months are more than 20 times as costly as those caught in the first six months.

Reduced losses

Standardized business processes

Implementing Data Analytics & Monitoring properly necessitates formal documentation & standardization of business processes. This by-product of the Data Analytics & Monitoring system provides several benefits. Standardized business processes are easier to teach when staff turnover occurs and easier to enforce.